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Elizabeth Joa

Purchasing Exercise
Course:
Catalog #:
Email:

INSTITUTIONAL MANAGEMENT
FNES 275
paulette.Johnson@qc.cuny.edu

Class Assignment for September 10, 2015. Email assignment by September 17

th

Read on line article on Purchasing Practice at http://finance.tufts.edu/purchasing/1guidelines-on-purchasing-practices and answer the following questions:
1.

What is a Dun and Bradshaw financial Report


- The Dun and Bradstreet financial report is a report that can help one evaluate
the potential supplier. The information in this report is only information that
the supplier wants to share. The report also provides information about the
history of the company.

2.

List 3 ways to select qualified bidders.


-

3.

What are 3 advantages of the bidding Process?


-

4.

To acquire information about how long the company has been in business for.
To acquire information about whether or not the companys finances are
stable.
To acquire information about the companys current and primary
clients/customers and seek references.

To be able to compare the different companys prices and services.


It allows for competition between the companies (suppliers).
Building up a list of companies for future bids.

What is an RFP?
- RFP is a Request for Proposal. The requester creates this document for the potential
suppliers. This document usually is used for long-term contracts and more intricate
projects. In addition to prices, the RFP also includes information about the purpose,
goals and objectives. The requester should clearly state what their time frame is for
their goals and the qualifications of the people who will be a part of the project. The
requester should also ask for the Request for Quotation (RFQ) and all the questions
and concerns contained within it.

5.

What is an RFQ?

- The RFQ is the Request for Quotation. This document is to help the requester
determine which supplier is the best and will meet all the requesters demands,
needs, and wants with the best prices. This document, which is given to all the
potential suppliers, contains questions that will help to determine the requesters best
supplier. The RFQ is usually used for standard items. The most important elements of
the RFQ are the price, delivery and inventory information. This document should help
the supplier submit a valid quote. The RFQ should contain detailed information about
the products, the products specifications, the quantity and quality requirements,
payment and warranty terms, and delivery and inventory demands.
6.

What is the difference between an RFP and an RFQ?


- The difference between RFP and RFQ is that the RFP is usually used for more
complex projects, services, and for long-term contracts. Meanwhile, the RFQ is
typically used for standard items. The RFP not only includes elements found in the
RFQ, but also other important aspects to take into consideration such as the goals and
purpose of the requesters.

7.

What is a Blanket Order?


- A Blanket Order is a contract or agreement between the requester and the supplier.
The contract is sent out to the supplier to state and establish the purchases of the
items or services for a certain period of time. The Blanket Order is created after the
terms and conditions have been negotiated and established.
Use Chapter 6 of the textbook to answer the following questions:
8.What is the function of the United States Department of Agriculture (USDA) ?
- The function of the USDA is to provide grading and inspection for meat products,
fruits and vegetables, poultry, eggs, and dairy products. The U.S. grade standards are
the basis for the grading. They enforce the Meat Inspection Act, Poultry Products
Inspection Act and the Egg Inspection Act.
9. What is the function of the Food and Drug Administration (FDA) ?
- The function of the FDA is to regulate the production, manufacturing, and
distribution of food except for meat, poultry and eggs. The FDA is responsible for
enforcing the federal Food, Drug and Cosmetic Act; the Fair Packaging and Labeling
Act; and the Nutritional Labeling and Education Act.
10. What are the stages of the Market Channel ?
- Through the market channel, food is processed and distributed in stages from sources
to consumers. The stages of the Market Channel include growing, harvesting, storage,
processing, manufacturing, transportation, packing and distribution. A channel is one
segment of many, where an exchange occurs.